The most handsome guy in the US stock market! MicroStrategy (MSTR.US) has surged nearly 500% this year, ranking as the fourth largest Bitcoin holder globally.

In June 1998, when MicroStrategy (MSTR.US) went public, the scrolling banner in the trading hall was still reminding traders not to confuse the stock codes of the similar-sounding companies MicroStrategy and Microsoft Corporation (MSFT.US). 26 years later, MicroStrategy and Microsoft Corporation were once again connected, but for completely different reasons. MicroStrategy founder and Chairman Michael Saylor stood before the shareholders of Microsoft Corporation, trying to convince them that this company, currently valued at over $3 trillion, should put a portion of its $78.4 billion cash, equivalents, and short-term investments into Bitcoin. Michael Saylor stated, "Microsoft Corporation cannot miss the next technological wave, and Bitcoin is that wave." However, the vast majority of Microsoft Corporation's shareholders did not agree with Michael Saylor's viewpoint, with less than 1% of them voting in favor. In contrast, Michael Saylor went all in on this strategy. Since mid-2020, MicroStrategy has purchased 439,000 bitcoins, which are currently valued at around $42 billion, the basis for the company's market cap rising from about $1.1 billion in mid-2020 to its current $82 billion. On Monday, MicroStrategy stated in a filing that over the past week or so, the company had purchased 5,262 bitcoins at a price of approximately $561 million, with an average price per bitcoin of $106,662. This brought the total number of bitcoins held by the company to 444,262. The software arm of MicroStrategy focused on business intelligence generates quarterly revenue just slightly over $1 billion. After soaring in 1998 and 1999, the stock plummeted during the bursting of the dot-com bubble, losing almost all of its value. Over the following decades, the stock slowly rebounded and then surged again with Bitcoin. After four years of frenzy buying Bitcoin, MicroStrategy has become the fourth largest holder of Bitcoin globally, only behind Bitcoin's founder Satoshi Nakamoto, BlackRock, Inc.'s iShares Bitcoin Trust, and cryptocurrency exchange Binance. This has often resulted in MicroStrategy's stock performance being aligned with Bitcoin. Analysts believe that MicroStrategy's decision to buy Bitcoin to protect the value of its reserves is a key factor in increased stock attractiveness. Data shows that as of last Friday's close, MicroStrategy has surged by 477% year-to-date, ranking second among US technology companies with a market cap of $50 billion and above, only behind AppLovin (APP.US). In 2023, MicroStrategy has already surged by 346%. Although the rebound of MicroStrategy was already well underway before November, the support of the crypto industry and Trump's victory in the US presidential election further boosted the stock. Since November 5th, MicroStrategy's stock price has risen by 60% and surpassed its high point since 2000 on November 11th. Michael Saylor seems to have become a evangelist for Bitcoin. However, critics of him are louder than ever before. Critics call Michael Saylor a "cult-like leader" whose strategy is a "Ponzi cycle," purchasing Bitcoin supported by issuing bonds and stocks to increase MicroStrategy's stock price, and then repeating the process. Presto Research analyst Min Jung stated that MicroStrategy's reliance on Bitcoin to meet its financial needs may pose risks. He said, "Currently, the favorable price trends of Bitcoin allow MicroStrategy to maintain a positive feedback loop an increase in MicroStrategy's stock price can raise funding for further Bitcoin purchases, boosting the price of Bitcoin and the company's stock value. While this strategy is effective during a bull market, its sustainability largely depends on the continuous appreciation of Bitcoin." Prominent short-selling firm Citron Research pointed out in late November that MicroStrategy was "overheated." Citron Research analyst Andrew Left stated on the social media platform X that MicroStrategy has almost turned into a Bitcoin investment fund and initiated a short position against the company. With the introduction of Bitcoin ETFs, investors can directly invest in Bitcoin funds without relying on MicroStrategy's stock as an alternative option. Citron Research pointed out that under Michael Saylor's leadership, MicroStrategy has made massive Bitcoin purchases, even financing through debt issuance. Michael Saylor's enthusiastic pursuit of Bitcoin using capital market financing has also driven MicroStrategy's stock price to skyrocket this year. However, Citron Research believes that this looks more like the enterprise financing version of an infinite money glitch in a video game lucrative, addictive, and possibly unsustainable. In response to the criticism, Michael Saylor stated, "It's like developers in Manhattan, every time the real estate prices in Manhattan go up, they issue more bonds to develop more real estate. That's how..."."What makes the buildings in New York so tall?" "It has been ongoing for 350 years. I would call it economic."It is worth mentioning that shortly after the end of the US presidential election, Michael Saylor stated in an interview: "With the 'Red Wave' sweeping the market, Bitcoin is on the rise, and other digital assets will begin to soar." He said that Bitcoin is still the "safe transaction" in the cryptographic field, but with the "digital asset framework" of a more widespread cryptographic market in place, the entire digital asset industry will experience an increase. He added: "Taxes will decrease. Discussions about unrealized capital gains taxes and wealth taxes are no longer on the table. All hostilities from regulatory agencies towards banks dealing with Bitcoin have also disappeared." MicroStrategy has become more aggressive in purchasing Bitcoin. So far this year, MicroStrategy has purchased over 255,000 Bitcoins, with about two-thirds of that purchased after November 11th. One week before the US presidential election, MicroStrategy announced a plan called "21/21" in its quarterly report, which aims to raise $42 billion in funds over the next three years - by raising $21 billion through equity and $21 billion through debt to purchase more Bitcoin. For Michael Saylor, owning even more Bitcoin is not excessive. In September, he predicted that by 2045, the value of each Bitcoin could reach $13 million, equivalent to an annual growth of 29%. Michael Saylor believes that Bitcoin is the foundation of a new digital economy that will only continue to grow, and that "every day is a good day to buy Bitcoin, even if you buy at the highest point, it is an optimistic investment prospect." Although Microsoft Corporation did not follow Michael Saylor's advice, he still recommends that companies mimic his strategy. He said that there are still many "zombie companies" whose core business has no growth, so they can better utilize cash.